The Chairman of the Fed Ben Bernanke and his predecessor the much hyped Greenspan have worked tirelessly and doggedly to destroy the greenback and indeed the US economy and the end of this long road may well be in sight.
(Incidentally the Fed is a private company and has no relation to the Federal Government)
US Trade Agreements have opened US doors to MNCs and US Joint Ventures and their cheap imports bear no additional manufacturing costs associated with Environmental Protection, Quality Assurance, Health & Safety, Training and other associated costs all of which are compulsory in USA and indeed in Europe. In fact if we manufactured many of these goods in Europe they would be banned from sale and doubtless law suits would not be far behind.
But the consequential demise in manufacturing in USA and EU, due to migration of industries to Asian cheap labour centres, has had many other effects; fiscal policies have been cut due to the fall in tax and import revenues which has caused public sector job losses and public spending on necessary projects has effectively reduced with a consequential fall in the quality of life - and also national security. In UK our Air Force is to be further reduced again and will be downsized to levels which existed at the start of WW1.
But who needs hindsight? We have seen it coming for several years and one day we will try to explain the logic of stimulus spending to our children's blank uncomprehending stares.
Yes, perhaps future generations will see it for what it always was, a stubborn and abject refusal by MNCs to let go of their super-profits earned in Asian sweat shops and the stimulus spending designed not to fix but to delay the inevitable like one big party before the bailiffs arrive? But MNCs are above the chaos and politicians do as they are commanded; conventional wisdom dictates that politicians lead the people.... by the nose?
With Europe having now firmly rejected the flawed logic of stimulus spending, the US has just announced it will embark on another round of stimulus spending; this being due to the collapse in economic "recovery" since the last round of stimulus spending ended. How surprising, I mean did anyone really think stimulus spending would fuel a recovery?
Okay, so Ben and Bernie have USA almost on its knees, weakened and conditioned for anything including an Israeli air strike against Iran which will inevitably result in another war, just what the ailing US economy needs?
Well done, the Boys from Tel Aviv?